Stocks rallied on Wednesday, with the S&P 500 clawing back more of the rout since late February that took the benchmark briefly into correction territory, as the Federal Reserve forecast it would still cut interest rates two times in 2025.

The Dow Jones Industrial Average climbed 383.32 points, or 0.92%, and closed at 41,964.63. The S&P 500 jumped 1.08% to end at 5,675.29, and the Nasdaq Composite advanced 1.41% to settle at 17,750.79.

The central bank kept the federal funds rate at a range of 4.25% to 4.5%, a decision that was widely expected. That said, the Fed kept its outlook at two rate cuts coming in the remainder of this year, noting "uncertainty around the economic outlook has increased."

"The economy is strong overall and has made significant progress toward our goals over the past two years," Federal Reserve Chair Jerome Powell said during a press conference following the decision announcement. "Labor market conditions are solid, and inflation has moved closer to our 2% longer-run goal, though it remains somewhat elevated."

At the end of the day, traders liked that the Fed kept its outlook for a couple of rate cuts this year, as well as Powell suggesting the economy was still strong. He also said any effect from tariffs on inflation would likely be only short term.

"The most important thing to recognize is that the information that came across was almost exactly what people had expected," Michael Green, chief strategist at Simplify Asset Management, told CNBC. "We've now had two consecutive summers in which the inflation has been much weaker than expected, and two consecutive winter and spring periods in which inflation has been higher. That suggests that there is residual seasonality that is not being properly captured."

The Fed's decision comes against a backdrop of rising tensions between the U.S. and major trade partners. President Donald Trump earlier this month imposed levies on goods from Canada, Mexico and China. Canada and China have since retaliated with duties of their own.

Trump's temporary tariff exemptions on some imports from Canada and Mexico are set to expire April 2.

Investors are coming off a rough Tuesday, which saw the recent market sell-off come back in full force after two winning sessions. The Dow and the S&P 500 are more than 6% and more than 7%, respectively, below their recent closing highs. The Nasdaq, meanwhile, is roughly 12% off its record close.

Stocks close higher after Fed policy decision

The three major averages finished Wednesday's session in positive territory after the Federal Reserve decided to leave interest rates unchanged.

The Dow Jones Industrial Average rose 383.32 points, or 0.92%, to close at 41,964.63. The S&P 500 gained 1.08% to finish at 5,675.29, and the Nasdaq Composite jumped 1.41% to finish at 17,750.79.

— Sean Conlon

Cyclical sectors rise after Fed decision

Fed Chair Jerome Powell's measured praise of the U.S. economy appears to be giving a boost to the more cyclical parts of the stock market.

The financial sector was up 1.3% in late afternoon trading, according to FactSet. The industrials sector rose 1.5%, while the energy sector gained 1.9%.

Powell on Wednesday acknowledged that there are signs of weakness in consumer spending and in sentiment surveys but said the economy is "strong overall."

— Jesse Pound

Stocks rally to session highs as investors watch Powell take questions

The thee major indexes traded around session highs on Wednesday afternoon as investors watched Federal Reserve Chair Jerome Powell's press conference.

The S&P 500 and Nasdaq Composite rose approximately 1.2% and 1.6%, respectively, at around 2:50 p.m. ET. The Dow climbed about 400 points, or 1%.

Small-cap stocks also rallied, with the Russell 2000 jumping 1.7%.

— Alex Harring

Fed decision will likely spark stagflation worries, economist says

The threat of stagflation is growing as central bankers navigate a period of "policy fog" ahead of U.S. tariff effects, according to LPL chief economist Jeffrey Roach.

"As growth prospects falter and inflation remains sticky, we should expect investors to get more worried about stagflation," Roach said. "The updated projections are more downbeat and will place downside pressure on the dollar in the near term."

Roach added that core inflation should decelerate by the summer months so the Fed can cut rates in its June meeting.

— Pia Singh

Consumer staples are gaining momentum relative to the broader market, Wolfe Research says

Now might be the time to turn to consumer staples as an investor, according to Wolfe Research.

In a recent note, technical analyst Rob Ginsberg highlighted a chart showing the sector is breaking out relative to the S&P 500 following a two-year downtrend. This could mean the sector is gaining momentum.

"Regardless of a bull or bear market, alpha is generated by riding those charts with the strongest relative momentum and avoiding those in a downtrend," Ginsberg wrote. "We mention this because the Consumer Staples sector looks to be turning vs. the broader market following a multi-year downtrend."

— Lisa Kailai Han

Fed keeps rates unchanged

The Federal Reserve kept interest rates unchanged in a range of 4.25% to 4.5%, as was widely expected. The central bank also indicated it still expected to reduce rates later this year.

"Uncertainty around the economic outlook has increased," the Fed said in a statement. "The Committee is attentive to the risks to both sides of its dual mandate."

— Fred Imbert

Venture Global stock rises after Energy Department approves LNG export project

Shares of liquified natural gas producer Venture Global rose nearly 2% after the Department of Energy authorized exports from the company's CP2 LNG terminal in Cameron Parish, Louisiana.

It is the fifth LNG export approval issued by the Energy Department since President Trump took office. Trump has promised to boost U.S. LNG exports as part of his "energy dominance" agenda.

Venture Global has disappointed investors since the company started trading on the New York Stock Exchange on Jan. 24, with its stock falling 56% through Tuesday's close.

— Spencer Kimball

Boeing, Nvidia, Autodesk among stocks making biggest midday moves

Check out the companies making headlines in midday trading:

• Autodesk — Shares of the design software maker rose nearly 4% after Starboard Value said it is preparing to wage a proxy fight and intends to nominate a minority slate of director candidates ahead of the company's upcoming annual meeting.
• MicroStrategy — The company, which is now going by Strategy, rose 5.2%. A day earlier, it said it was issuing more securities to fund cryptocurrency purchases. The company is the largest corporate holder of bitcoin.
• Boeing — The aerospace giant saw its shares pop 6.3% after Chief Financial Officer Brian West gave upbeat commentary at an investor conference, saying Boeing's cash burn is easing this quarter and its factories are improving. West also brushed off concerns about Trump's tariffs, but said that any impact depends on how long the uncertainty lasts.

For the full list, read here.

— Pia Singh

AI chip stocks including Nvidia could see a strong rebound, UBS says

The turmoil in artificial intelligence chip stocks including Nvidia this year could continue for some time, but investors should prepare for a strong rebound in the group, according to UBS.

"While investors should brace for elevated tariff-related volatility over the next few weeks as the Trump administration's trade review approaches, experience from 2018 suggests that a strong correction in tech could be followed by a significant rebound as investors eventually shift their focus back to strong fundamentals," read a Tuesday note from the chief investment office at UBS Global Wealth Management.

"With elevated market volatility amid near-term tariff uncertainty, we recommend investors continue to take advantage of volatility through structured strategies and by buying the dip in quality AI stocks," the note continued.

Nvidia shares are in bear market territory, which is typically defined as a more than 20% move down from its peak. The stock was last more than 24% off its 52-week high.

Semiconductor exchange-traded funds such as the iShares Semiconductor ETF (SOXX) and the VanEck Semiconductor ETF (SMH) were down more than 20% each.

— Sarah Min

Stock market has negative track record on recent Fed days

Traders looking for a reprieve from the selling in the stock market may not get much help from the Federal Reserve on Wednesday.

Wells Fargo strategist Christopher Harvey pointed out in a note to clients that the stock market has had a negative return on Fed decisions days since the start of 2024.

"On average, FOMC day has been a negative for stocks (SPX -0.2%), and slightly worse for small caps (SML: -0.4%) and value (RLV: -0.4%)," Harvey said.

There are also other hints in the stock market and the CBOE Volatility Index that the sell-off is not yet done. That could create some downside risk for a Fed meeting where the central bank faces an uncertain economic picture.

— Jesse Pound

Bitcoin rises ahead of Fed decision but could stay rangebound in near term

Crypto prices rose with equities ahead of the Fed rate decision Wednesday afternoon, with bitcoin up more than 2% at about $84,000, after bouncing from the $81,000 level a day earlier.

Bitcoin has been stuck below the $90,000 level for much of the month as crypto investors have lost some of the postelection and post-inauguration euphoria that came with the Trump victory. Absent a catalyst, crypto prices have been beholden to global economic concerns, which have intensified in recent weeks on Trump's tariffs.

"In the near term, BTC's outlook appears neutral," said Matt Mena, crypto research strategist at 21Shares. "With the Fed signaling patience on rate cuts, liquidity conditions may remain tight, reinforcing key resistance levels around $85,000 and $90,000 to $95,000 as investors digest recent market moves and assess economic indicators."

"While a dovish surprise from the Fed could provide a short-term boost, bitcoin may continue consolidating in the absence of clear catalysts," he added.

— Tanaya Macheel

Boeing shares pop following positive CFO comments

Boeing shares jumped 6% on Wednesday after finance chief Brian West said the plane maker's cash burn was easing and factories were improving.

West provided an upbeat outlook for the embattled company, whose shares tumbled more than 32% last year. He also dismissed immediate concerns tied to President Donald Trump's tariffs, while cautioning impact would likely be determined by how long uncertainty swirls around international trade policy.

"We think we're off to a good start for the year," West said at a Bank of America investor conference.

— Alex Harring, Leslie Josephs

Turkish stock ETF plunges after Erdogan rival's arrest

An exchange traded fund that tracks Turkish stocks plummeted Wednesday following the arrest of President Recep Tayyip Erdogan political rival Ekrem Imamoglu.

The iShares MSCI Turkey ETF (TUR) was last down 11.4%. That puts in on track for its worst day since Dec. 17, 2021, when it shed 14%.

— Fred Imbert

Williams-Sonoma falls after issuing guidance, reporting accounting error

Williams-Sonoma was under pressure in morning trading Wednesday after delivering tepid guidance for the year ahead.

Shares of the home furnishings retailer dropped 11% after the company said that net revenue could decline in the coming year. Williams-Sonoma guided for an revenue -1.5% to 1.5% for its fiscal year ending January 2026, citing the fact that it will be a 52-week period as opposed to 53 weeks for the prior year.

The company also disclosed that it had over-reported freight expenses in prior years, resulting in a $49 million accounting adjustment.

— Jesse Pound

Stocks open higher ahead of Fed decision

Stocks started off Wednesday's trading session in the green.

The S&P 500 gained 0.3%, while the Nasdaq Composite jumped 0.5%. The Dow Jones Industrial Average rose 85 points, or 0.2%.

— Sean Conlon

UBS adds Nvidia to its global top pick list

UBS added Nvidia to its "Global Top List," saying the recent fears over the structural demand for artificial intelligence has created an appealing entry point for the stock.

Shares of Nvidia have tumbled more than 17% over the past month and the stock is nearly 25% below its all-time high reached in January.

"Near-term results may be uneven (e.g., new product cycles, supply chain), but we believe the demand for AI compute power remains structurally intact and see NVIDIA as well-positioned," UBS said in a note to clients Wednesday.

— Yun Li

Stocks making the biggest moves premarket

Check out the companies making headlines before the bell:

• HealthEquity — Shares of the health-focused fintech company plunged 15% following weaker-than-expected fourth-quarter earnings. HealthEquity posted non-GAAP earnings per share of 69 cents on revenue of $311.8 million. Analysts polled by FactSet expected earnings of 72 cents per share on revenue of $305.8 million.
• General Mills — Shares lost more than 3% after General Mills lowered its full-year guidance and reported a top-line miss for the third quarter. The processed food company now sees organic net sales falling between 1.5% to 2% in the full year, versus previous calls for flat sales to a 1% rise. General Mills cited inventory headwinds and softer demand as revenue of $4.84 billion in the third quarter missed a FactSet estimate of $4.96 billion.
• Goldman Sachs — The bank's shares ticked nearly 1% lower on the heels of an Oppenheimer downgrade to perform from outperform. Oppenheimer cited the lack of a clear rebound in merger and acquisition activity as a key reason for the call.

Read the full list here.

— Hakyung Kim

Nvidia shares rise following the announcement of new AI chips

Nvidia shares rose more than 1% in the premarket Wednesday after the artificial intelligence company unveiled at its annual GTC conference new chips for the building and deploying of AI models.

The chipmaker's chief executive Jensen Huang announced that its family of chips known as Blackwell Ultra is expected to launch in the second half of 2025, while Vera Rubin, its next-generation graphics processing unit, or GPU, will ship in 2026.

The stock has been having a rough year, with its year-to-date loss of more than 14% being more than three times the S&P 500's loss during that timeframe. Over the past month, shares have fallen more than 17%, also lagging the broader market.

— Sean Conlon, Kif Leswing

Fed and market 'desperately need' clarity on policy, Barclays strategist says

The Federal Reserve is searching for certainty around economic variables such as international trade that have rattled investors in recent weeks, according to Julien Lafargue, chief market strategist at Barclays Private Bank and Wealth Management.

"In the end, the Fed, just like the market, desperately need some visibility on trade, tariffs, and overall policies," Lafargue said.

The Fed is widely expected to hold interest rates steady during its Wednesday policy announcement. Lafargue said Fed Chair Jerome Powell, who holds a post-announcement press conference, will likely "avoid ifs and buts" and continue showing support for a data-dependent approach.

— Alex Harring

Guggenheim maintains buy rating for streaming stock Roku

In a Wednesday note, Guggenheim reiterated its buy rating on Roku.

Shares of the streaming platform have shed 9% this year, and have eked out a meager 4% gain over the past 12 months. Guggenheim lowered its price target to $100 per share from $115, although this revised target is still 48% above where the stock closed on Tuesday.

"We maintain our high conviction that Roku will further improve engagement and economics in 2025, and that the business will exit the year at its strongest," wrote analyst Michael Morris. "Management's Platform monetization efforts, driven by Chief Financial Officer Dan Jedda and Roku Media President Charlie Collier, are laser focused on growing the financial contribution from the company's 90mm+ streaming households."

Morris added that Roku has continued to expand its household streaming penetration, despite competitive pressures. Meanwhile, the company's advertising inventory continues to grow, alongside its potential advertising monetization going forward.

— Lisa Kailai Han

Morgan Stanley expects to cut roughly 2,000 workers, Bloomberg reports

Financial services giant Morgan Stanley expects to slash around 2,000 employees later this month, Bloomberg News reported Tuesday afternoon, citing people familiar with matter.

The bank anticipates making the cuts across the firm, with an exception for its force of financial advisors, the sources told Bloomberg.

Shares were little changed in after-hours trading following the news report. Morgan Stanley is off about 6% in 2025.

— Darla Mercado

Gilead Sciences, HealthEquity shares decline after close

Gilead Sciences and HealthEquity were among the biggest losers in after-hours trading on Tuesday.

• Shares of Gilead Sciences declined about 2.9% on a report in The Wall Street Journal that the Health and Human Services Department is considering plans to significantly cut the federal government's funding for domestic HIV prevention. That could affect Gilead's business, as the drugmaker sells medicines for HIV and AIDS.
• HealthEquity's stock price plunged 13% on the back of the company's fourth-quarter earnings disappointment. HealthEquity, an administrator of health savings accounts, reported non-GAAP earnings per share of 69 cents on revenue of $311.8 million, while analysts polled by FactSet expected earnings of 72 cents per share on revenue of $305.8 million.

— Pia Singh

Meta Platforms finally falls into negative territory for 2025

Meta Platforms' 3.7% decline on Tuesday pulled the Facebook parent's shares into negative territory year to date, making it the final member of the "Magnificent Seven" to fall into the red for 2025.

Meta is now down 0.5% this year.

It has been a rough few months for last year's Big Tech high-flyers.

Investors' anxiety around the U.S. economy and President Donald Trump's approach to tariff policy has led to flight to safety in the markets, with investors fleeing from the tech sector and flocking toward defensive corners of the market such as health care and energy.

To that end, fellow Magnificent Seven stock Tesla is off 44% in 2025, while artificial intelligence play Nvidia is down 14% during the period.

— Adrian van Hauwermeiren, Darla Mercado

Stock futures open little changed Tuesday night

Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 were slightly below the flatline shortly after 6 p.m. ET. Tuesday night.

— Pia Singh